How To Find A Consistently Profitable Forex Strategy
Regardless of what you might have read on the Internet, there are plenty of great Forex trading strategies out there. People who don’t know how to trade often take a profitable trading system and trade it poorly, leading to unprofitable results.
Then they go on the web and complain about the system, when it was really their poor trading responsible for the losses. In this article, I want to go over what to look for when looking for a trading system that brings in consistent profits. Most people are under the impression they can get a Forex system from someone else and learn to trade it profitably in a very short time. This is just not the case.
There are too many subtle things to learn about the particular system itself and the Forex market in general to master a system that quickly. The truth is, a “turn key” Forex solution is very hard to find. (By “turn Key” solution, I mean a system you get from someone else and can immediately start trading profitably like the creator).
To be successful with any system, you need trader skills like money management, trader psychology and strict trading according to the rules. Without this combination of skills, you are doomed to fail. Even with a good system you will not get the results you should if you trade it with unrealistic lot sizes and don’t manage the trade according to the rules because of emotional issues when real money is involved.
Therefore, one of the things to look for is a system or service that goes over trader skill development as well as the particular rules of the system to be traded. Just getting entry and exit rules is not enough to make you a successful trader. The best Forex strategy for consistent profits has to be the combination of money management, strict trading rules and the mental and emotional makeup to trade the strategy under live market conditions. When you boil it all down, what you really need to have is a Forex trading strategy with a positive profit expectancy. This means that if you trade the strategy correctly, you should expect to be in profit. The question you need to ask is, “Can you trade the strategy correctly?”
When you get right down to it, it is not all that difficult to find a Forex strategy with a positive expectancy. The trick is finding a Forex system to trade that fits your trading personality, lifestyle and goals. But once you get this trading strategy in your hands, you need to trade it with the correct money management and according to the rules when real money is at stake. In this respect, YOU are the determining factor of whether you are going to be consistently profitable or not. Unfortunately, most traders don’t spend enough time trading the system to gain the necessary trading skills and end up prematurely running to the Internet to complain that the trading strategy did not work.
One step you can take to make the process of finding a consistently profitable Forex strategy you can trade correctly is to focus on higher time frame systems that trade on the Daily charts. Trading the lower time frames is very difficult, and learning even a proven system on these time frames is very daunting. However, if you take a long term view of trading and focus on higher time frames, the probability of your success increases tremendously.
***Edward Lomax is part of the Forex Investing Live Team, dedicated to helping people tap into the true wealth creating opportunity the Forex Market provides. Take the FREE course, Forex Investing Battle Plan and learn how to use the secrets of the established wealthy to ensure your success. ForexInvestingLive.com